DAVENPORT, Iowa — Davenport’s aldermen have approved an agreement with Canadian Pacific in which the railroad will provide up to $10 million to mitigate impacts of the planned merger with Kansas City Southern, which could triple freight traffic through the city.
In return, the city will not oppose the merger.
The vote at Wednesday’s city council meeting was unanimous, although the Quad-City Times reports the meeting’s public comment period included at least 15 residents asked the council to delay approval, seek more money, or turn down the offer and lobby the Surface Transportation Board to block the merger.
Ahead of the vote, Davenport Mayor Mike Matson urged approval, saying the city believed it was getting the best possible deal. “I believe the city council’s role and obligation is to ensure that our city does not find itself in a position where the merger moves forward and we have $0 invested by Canadian Pacific in our community,” he said. “That outcome would be completely irresponsible.”
The funds from CP, contingent on STB approval of the merger, include $8 million for use at the city’s discretion — likely for work to create a grade-crossing quiet zone in the central city and pedestrian access for parkland and other features along the Mississippi River — and another $2 million for a grade-crossing separation project, if the city can secure other funding to build an overpass [see “Davenport, Iowa, reaches agreement …,” Trains News Wire, Aug. 3, 2022].
A former Davenport mayor lobbied against the deal, suggesting the city should organize an effort to fight the merger [see “Former mayor urges Davenport …,” News Wire, Aug. 5, 2022]. And some people asked the council to delay its decision until after a scheduled Sept. 13 meeting in Davenport by the STB’s Office of Environmental Analysis on the draft environmental impact statement issued last week. That report projects limited impact from the merger, save for noise at some locations [see “STB draft review finds little environmental impact …,” News Wire, Aug. 5, 2022].
But Davenport City Attorney Tom Warner told the newspaper that the city had a 10-day window to approve the agreement.
The bird in the hand is worth four in the bush. Take the money while you neighbor is offering it, but use it wisely as you will continue to be neighbors.
Well said Sir. You point , I’ll whistle.
“…$8 million for use at the city’s discretion…” Eh, no comment.